Beginning in 1922, the rate of exit of US tire producers increased sharply and the industry began a severe and protracted shakeout. Just 5 years earlier, the tire industry experienced a surge in entry that led to a rise of over 80% in the number of producers. We propose an explanation for this...

To what extent are firm size differences influenced by entrepreneurs' pre-founding experience, and do these differences persist over time? We analyze these questions using a novel data set assembled for Australian and New Zealand wine producers on their heritage and sizes at various ages. Our...

We analyse the rate of formation, the characteristics, and the performance of different types of new firms in Sweden over a decade. Comparisons with Denmark, Brazil, and the United States suggest that the environment for new firm formation in Sweden is not markedly different than elsewhere. In...

Evidence on entry, exit, firm survival, innovation and firm structure in new industries is reviewed to assess whether industries proceed through regular cycles as they age. A leading depiction of the evolution of new industries, the product life cycle, is used to organize the evidence it is...

Firms that diversify into new and existing industries typically outperform de novo entrants, but in some new industries diversifying firms are displaced by later-entering de novo firms. Little is known about when and how new firms can overcome the advantages of diversifying firms. This is...

After a buildup in the number of firms, new industries commonly experience a "shakeout" in which the number of firms declines sharply. Three theoretical perspectives on how technological change contributes to industry shakeouts are analyzed. The theories are used to synthesize predictions...

Various theories that can account for employees leaving incumbent firms to start their own firms in the same industry are discussed. The theories are evaluated using evidence from three new and one old study of such employee startups in high-tech industries and from studies of high-tech and...